Upgrading from UW to N on expected boost in local consumption
More social benefits. The Kingdom’s decision to disburse a one-time two-month bonus of SAR55bn to public sector employees in 2015 (vs. SAR42bn in 2011, which included an increase in minimum wage) implies additional take-home pay per employee of SAR47k, 3% over the increase realized in 2011, on our calculations. Back then, Alhokair’s Saudi stores’ sales per sqm increased by 16% annually over 2011-12 (also aided by the application of Nitaqat credits in the private sector). We expect a similar effect on broader discretionary consumption, with expectations that Alhokair’s sales per sqm growth will rise in 4QFY15e and FY16e by 16% y-o-y, respectively, up from a prior expectation of c5% y-o-y. It is also worth noting that over and above the plain vanilla salary bonuses, the government also announced disbursements of cash payments of SAR5bn (vs. SAR1.1bn in 2011) to students and SAR2bn (vs. none in 2011) pensioners, which imply potential upside to our numbers.
Fawaz Abdulaziz Alhokair Company SJSC Formerly known as Fawaz Abdulaziz Al Hokair And Company. Fawaz Abdulaziz Alhokair Co SJSC is a Saudi Arabia-based company. The Company's activities include the wholesale and retail trade in ready-made cloth for men, women and children, shoes, textiles, house and office furniture, perfumes, natural cosmetics, ornaments and beauty materials and their compounds and traditional jewelry; the wholesale and retail trading in sports wares and shoes and their complementary; the management and operation of optics centers, wholesale and retail trading in eye glasses and sun glasses, contact lenses, optical equipment and accessories; purchase of land and construction of building thereon for the purpose of running the Company's activities and business; the manufacture, wholesale and retail in Abayas, robes, scarfs and other women embroidered gowns; the wholesale and retail trading in gold and silver, among others.
CI Capital is a diversified financial services group and Egypt’s leading provider of leasing, microfinance, and investment banking products and services.
Through its headquarters in Cairo and presence in New York and Dubai, CI Capital offers a wide range of financial solutions to a diversified client base that include global and regional institutions and family offices, large corporates, SMEs, and high net worth and individual investors.
CI Capital leverages its full-fledged investment banking platform to provide market leading capital raising and M&A advisory, asset management, securities brokerage, custody and research. Through its subsidiary Corplease, CI Capital offers comprehensive leasing solutions, including finance and operating leases, and sale and leaseback, serving a wide range of corporate clients and SMEs. In addition, CI Capital offers microfinance lending through Egypt’s first licensed MFI, Reefy.
The Group has over 1,700 employees, led by a team of professionals who are among the most experienced in the industry, with complementary backgrounds and skill sets and a deep understanding of local market dynamics.
CI Capital has been recognized as the “Best Investment Bank in Egypt” by EMEA Finance for four years running from 2013-2016, and by Global Finance in 2014 and 2015.
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